Corner Lot Retail Flex
For Sale
$1,699,000
906 Broadwater Avenue, Billings, MT 59101
COMMERCIAL - Billings, MT
Property Size24,456 SF
Lot Size0.62 Acres
Price / SF$69.47
Days on Market70
Property Features for 906 Broadwater Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Corridor Mixed-Use 1
Parking
25
Parking features
Parking Lot
Subdivision
Broadwater
Lot features
Alley
Directions
9th and Broadwater
Standard status
Active
APN
A03305
Size
24,456 SF
Lot size
0.62 Acres
Taxes and HOA fees
Tax Description
BROADWATER SUBD, S05, T01 S, R26 E, BLOCK 2, Lot 41 - 46 - AND - BROADWATER SUBD, S05, T01 S, R26 E, BLOCK 1, Lot 24, N79 FT LTS 24-26
Tax Annual Amount
20797
Legal Description
BROADWATER SUBD, S05, T01 S, R26 E, BLOCK 2, Lot 41 - 46 - AND - BROADWATER SUBD, S05, T01 S, R26 E, BLOCK 1, Lot 24, N79 FT LTS 24-26
Utilities
Sewer type
Public Sewer
Cooling system
Central Air
Water source
Public
Building Details
Year built
1956
Floors in Building
2
Roof type
Membrane
Listing Agency:
THE Agency Montana
(406) 800-1222
Listed By:
Lauren Bond · License #RRE-BRO-LIC-54002
(406) 800-1222
Added: Jun 15
Changed: Aug 19
Last Checked: Aug 23 at 1:06PM
MLS# 360023
Copyright © 2026 Billings Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This corner-lot retail flex building provides over 24,000 square feet of usable interior space arranged as retail, offices, and storage/warehouse. The improvements include an overhead door, a freight elevator, and bathrooms. The property was originally built in 1956 with an addition in 1984. Renovations totaling $400,000 were completed in 2013, with a new roof installed in 2020 and patching and re-striping in 2023.
The building is located on one of Billings’ busiest streets, with approximately 19,000 cars per day traveling this route. It sits on two parcels totaling about 21,000 square feet, and the sale also includes an additional 5,925 square foot lot at 846 Broadwater Ave to the east for extra parking.
For tenants or buyers, the mix of retail and office space alongside a warehouse component supports a range of commercial uses that need both customer-facing space and back-of-house capacity. Billings Hardware is scheduled to vacate in February 2027, with earlier occupancy possible if the buyer or tenant wants to move in sooner.
The building is located on one of Billings’ busiest streets, with approximately 19,000 cars per day traveling this route. It sits on two parcels totaling about 21,000 square feet, and the sale also includes an additional 5,925 square foot lot at 846 Broadwater Ave to the east for extra parking.
For tenants or buyers, the mix of retail and office space alongside a warehouse component supports a range of commercial uses that need both customer-facing space and back-of-house capacity. Billings Hardware is scheduled to vacate in February 2027, with earlier occupancy possible if the buyer or tenant wants to move in sooner.
Key Highlights
- For lease or sale; listed lease rate is $5.25/sq ft/month NNN (OAC).
- Approx. 24,000+ sq ft of usable interior space with retail, offices, storage/warehouse, an overhead door, freight elevator, and bathrooms.
- Corner lot on one of Billings’ busiest streets with ~19k cars/day; additional visibility on a high‑traffic route.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$140,977
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.30%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,819,540
$2.8M
Cap Rate 7%
$2,013,957
$2.0M
Cap Rate 9%
$1,566,411
$1.6M
Market Conditions
NOI Build-Up for 24,456 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$220.1K $9.00/SF
− Vacancy
−$18.7K −$0.77/SF
EGI
$201.4K $8.24/SF
− OpEx
−$60.4K −$2.47/SF
NOI
$141.0K $5.76/SF
Area
Billings, MT
Vacancy
8.50%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,819,540
Cap Rate 7%
$2,013,957
Cap Rate 9%
$1,566,411
Alternative Uses
Best Use
Flex RnD
$2.73M
$2.39M – $3.18M
NOI $190,948 @ 7.0% cap · market cap 11.24%
Second Best
Warehouse
$2.28M
$2.00M – $2.66M
NOI $159,773 @ 7.0% cap · market cap 9.40%
Theoretical Best
Office A
$5.34M
$4.67M – $6.23M
NOI $373,531 @ 7.0% cap · market cap 21.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Drive-in doors
19,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
881
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59101, MT
41,522
Population
18,864
Households
2.2
Avg Household Size
37
Median Age
22%
College-Educated
91%
High-School Grad
590.8 sq mi
ZIP Area
70
Density / Sq Mi
$58,165
Median Household Income
$36,258
Median Earnings
$930
Median Rent
$243,000
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Corner lot retail flex space with offices, storage/warehouse, an overhead door, and added parking lot.
Where is this flex space located?
The property is located at 906 Broadwater Avenue Billings, MT.
What is the asking price?
The asking price for this property is $1,699,000.
What are key features of this property?
This property features: For lease or sale; listed lease rate is $5.25/sq ft/month NNN (OAC).; Approx. 24,000+ sq ft of usable interior space with retail, offices, storage/warehouse, an overhead door, freight elevator, and bathrooms.; Corner lot on one of Billings’ busiest streets with ~19k cars/day; additional visibility on a high‑traffic route.
